Online peer-to-peer lending platform Billionloans has closed its seed funding round by raising $1 million from Reliance Corporate Advisory Services, a wholly owned subsidiary of Reliance Capital. The Bengaluru-based fintech will use the fund for further growth and expansion. It is focused on providing flexible and affordable financing options to individuals and small businesses that are finding it difficult to access loans from the traditional banking system.
Billionloans will initially focus on loans to SMEs, affordable housing loans, education loans and personal loans. To facilitate loans, the company has tied ups with various financial institutions and banks. The company plans to facilitate around Rs 2,000 crore of loans across multiple products and lenders in the next three years.
Billionloans chairman V Balakrishnan, said, “Our goal is to fundamentally disrupt how borrowers are sourced and appraised using technology in the quickest possible manner. This will lead to a dramatic change in access, both for borrowers with thin credit histories and for lenders looking to expand beyond their traditional customer bases. The investment from Reliance Capital is a great validation of our business model.” The company was founded by Rangan Varadan, a serial entrepreneur who also co-founded MicroGraam.